Why American Eagle Outfitters Outdid Its Peers
While some apparel and footwear companies saw their profits, revenues, and stock prices hammered deep into negative territory by the COVID-19 pandemic, a handful of others, including American Eagle Outfitters (NYSE: AEO) managed to outperform. American Eagle's resilience comes mostly from its online sales, which popped 33% during the first quarter of 2020, and rose even more once the coronavirus effectively shut down retail.
According to Zacks, American Eagle's e-commerce strength allowed its stock value to rise more than 30% between mid-March and now, outpacing the apparel sector's 20% rebound. Morgan Stanley analysis pointed out that the company's 77% digital sales growth in May continued at levels seen in April, suggesting the online boom is ongoing even after American Eagle started reopening its brick-and-mortar stores.
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Source Fool.com
